Family Health Care Costs Will Top $20,000 A Year For First Time Ever: Study

Health care costs are due to surpass $20,000 for American families who get health insurance at work, a new study says.

$20,000: That's what a typical family covered by job-based health insurance will spend on health care this year, according to research by the consulting firm Milliman.

This year is the first time family health care spending is projected to surpass $20,000, said Jeremy Engdahl-Johnson, a spokesman for Milliman. A typical family spent less than half that on health care just 10 years ago, data from Milliman show. Health care costs have increased by 7 percent to 8 percent each year since 2008, CNN reported today.

Milliman's report, due to be published in May, is the latest in a seemingly endless series of studies, surveys and reports pointing out that U.S. health care spending is growing out of control, which won't come as news to people paying for health insurance and medical care. Another recent study projected that health care costs will eat more than half our income by 2037 if the trend isn't slowed.

Health care comprised 17.3 percent of U.S. gross domestic product in 2010. Spending growth in health exceeded economic growth by 2.4 percent from 2000 to 2009. One result is that even people who get insurance at work -- which typically is the most comprehensive and most affordable type of coverage -- are feeling the burden more an more.

Between 2007 and 2012, the average amount a worker paid for health insurance at work increased by 40 percent to $2,764, one study showed. What's more, fewer employees are even being offered coverage and those who are have seen premiums rise while deductibles and out-of-pocket costs balloon.

Meanwhile, the ranks of the uninsured continue to grow and the U.S. Census Bureau now says there are almost 50 million people in America who have no health insurance.

Photo by flickr user colindunn

These countries spend the most on health care, according to 24/7 Wall St.:

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• 10. France

  Total expenditure on health per capita: $3,978 Expenditure as % of GDP: 11.8% (3rd most) Annual growth of total health expenditure: +2.7% (18th most) Life expectancy: 81.5 years (8th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 9. Germany

  Total expenditure on health per capita: $4,218 Expenditure as % of GDP: 11.6% (4th most) Annual growth of total health expenditure: +4% (15th most) Life expectancy: 80.3 years (18th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 8. Austria

  Total expenditure on health per capita: $4,298 Expenditure as % of GDP: 11% (8th most) Annual growth of total health expenditure: +2.2% Life expectancy: 80.4 years (16th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 7. Denmark

  Total expenditure on health per capita: $4,348 Expenditure as % of GDP: 11.5% (6th most) Annual growth of total health expenditure: +6% (11th most) Life expectancy: 79.0 years (25th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 6. Canada

  Total expenditure on health per capita: $4,478 Expenditure as % of GDP: 11.3% (7th most) Annual growth of total health expenditure: +7.4% (7th most) Life expectancy: 80.7 years (tied for 12th highest)

• 5. Luxembourg

  Total expenditure on health per capita: $4,808 Expenditure as % of GDP: 7.8% (7th least) Annual growth of total health expenditure: +8% (6th most) Life expectancy: 80.7 years (tied for 12th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 4. Netherlands

  Total expenditure on health per capita: $4,914 Expenditure as % of GDP: 12% (2nd most) Annual growth of total health expenditure: +16.4% (the most) Life expectancy: 80.6 years (14th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 3. Switzerland

  Total expenditure on health per capita: $5,344 Expenditure as % of GDP: 11.6% (5th most) Annual growth of total health expenditure: +2.8% (17th most) Life expectancy: 82.3 years (2nd highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 2. Norway

  Total expenditure on health per capita: $5,352 Expenditure as % of GDP: 9.6% (16th most) Annual growth of total health expenditure: +8.4% (4th most) Life expectancy: 81.0 years (10th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

• 1. United States

  Total expenditure on health per capita: $7,960 Expenditure as % of GDP: 17.4% (the most) Annual growth of total health expenditure: +2.2% (14th least) Life expectancy: 78.2 years (27th highest) Source: <a href="http://247wallst.com/2012/03/29/countries-that-spend-the-most-on-health-care/#ixzz1qWtpJfhZ" target="_hplink">24/7 Wall St. </a>

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Comments

[Algo]

10:00 PM on 04/01/2012

This IS great news. Third World America - coming sooner rather than later.

[kywst09]

12:34 PM on 04/01/2012

Remember at voting time who pushed for the healthcare act to be rejected by the 9 wizzards, because you know and I know that they will turn it down as another of the far right attack on the middle class

[wgbobo]

08:35 AM on 04/01/2012

Pres. could have went across state lines for people to buy insurance or gotten a better hold
on the insurance companies plus the republicans,but their in the pockets of these insurance co.
When are we going to learn that our elected officiala are controlled entirely by their funders
and who ever gives the most doe ray me money?
Now he's got the insurance companies running scared. Yes premilums will go up for a number or
reasons. If where your employed a lot of your fellow employees are always sick this will raise premiums just one example.

[Robert SF]

05:43 PM on 03/30/2012

The cost issue of health care is really not so complicated. First you have to understand that it's not a problem of "waste." Money is never wasted. It may be spent on foolish things, but it always goes home in someone's pocket. Therefore, to lower health care costs, someone must go home with less money in their pocket. There's no way around that, but who will it be? Unless we have that conversation, we'll never lower health care costs.

[PragmaticFanatic]

05:14 PM on 03/30/2012

>>>>>>U.S. Census Bureau now says there are almost 50 million people in America who have no health insurance.

I've been reading "almost 50 million" for the last five years. Surely the "real" figure should be more like 60-75 million by now.

[Erger]

03:25 PM on 03/30/2012

One of the biggest reason Health Care and hospital prices are crazy is because our government has made it a law that hospitals have to treat people for FREE. When you make someone work for free, it is a form of SLAVERY. Show me where the Constitution says you have to work for free, OR provide medical care for FREE? If someone goes to a hospital and has no way to pay for their work, or worse, has a history of not paying for their work, the Hospital should be able to forcibly remove the idiot if necessary. Thats how simple it is. Instead, the government should go back to providing local free clinics, where emergencies can get treated. Only when people get what they deserve, and hospitals dont have to treat millions of people a day for free, will the costs come back to reality. I work friggin hard to pay for my health care, and I would NEVER expect free doctors or hospital care. But millions of people think they are entitled to free doctors, and until they become responsible for themselves and quit ripping off those of us who work and pay for medical, our doctors and hospitals will continue to be ridiculously expensive. SHAME ON ANYONE WHO EXPECTS FREE RIDES FROM DOCTORS AND HOSPITALS!

[minto]

03:55 PM on 03/30/2012

The only thing hospitals are required ro do by law is stabilize someone if they come into the emergency room or deliver a baby if some one is in active labor. At least that is what I read in "The Healing of America" by TR Reid. The problem with that according to him is that then you are forcing people to wait until their care is the most expensive because they are about to die instead of doing preventative care that is cheaper. I like your free clinic idea. Here in Alaska, there isn't enough doctors for every little village so they train health aides who are EMTs but can also do the routine stuff like ear infections or basic prenatal care. Then for anything more difficult, they can video conference with a doctor that in charge of several villages at once. They also send in reports to the doctor telling them every patient they saw and what they did so the doctor is updated on eveyone's care. It cuts costs alot because the doctor isn't doing every little thing.

[justanoldhippie]

04:05 PM on 03/30/2012

While I don't ever want a fellow American die on the steps of a hospital due to a lack of health insurance... I was surprised to find that the "1986 Emergency Medical Treatment and Active Labor Act (EMTALA)" left hospitals (taxpayers, private pay patients, AND private health insurance consumers) with this cost.

What I would like to know is how many of my fellow Americans who COULD afford health insurance refuse to carry it, and end up taking advantage of this federal legislation when something "unexpected" happens?

Private health insurance premiums have skyrocketed since 1980's and about that time, private sector employers started telling their employees to pay a percentage of this cost (there was also a Recession, Savings & Loan Crisis, Black Monday Wall Street Crash).

So, the private sector is supposed to just shut up and expect that this burden is ours, and that nothing will change... ever?

Our "employer based health insurance" premium (our share) was $14,400. a year. It only covered overpriced Rx's and office visits. There was 'no choice". It was all the employer offered. To use it for anything else, we had to pay another $6,500k in deductibles.

Employer based health insurance is NOT about health care. It is about setting the prices so that the employee will not use it for anything other than Rx and office visits.

THAT is the game.

[anthdif]

02:13 PM on 03/30/2012

my health care coverage costs 4,800 a year. Thank god good health and have not had major expenditures above the premium costs. I avoid fast food and will not eat a hamburger loaded with bacon and cheese. I don't smoke and am not grossly overweight. As for healthcare costs, I would like to see a study that links a countries health care cost to the same countries life style. It might be my imagination but Americans are getting fatter and the lines at McDonald's are getting longer. Starbucks is making millions on selling high fat content latte's. Perhaps the cost of health care is direcctly related to the lack of health care by the individual. Just saying.

[megwright]

02:39 PM on 03/30/2012

Google OECD statistics and you'll find everything you're looking for.

[flckr9]

01:56 PM on 03/30/2012

I pay for my own health coverage. That costs me $370/month/$4,440/year/ $5,000 annual deductible. I'll do the math for you,.. I'm basically out $9,440 before my insurance kicks in. Recently, I broke my arm. It was a bad break and I needed surgery, but how can ANYONE justify the resulting costs!!?? Here is what I and my insurance has been billed so far,...
ambulance,...
$1,400.,...12 miles to the local hospital. Expensive ride.
ER x-rayed my arm, started a saline drip, and I then lay on a guerny for the 12 hours. I saw a doctor for all of 2 minutes. I asked him if I needed surgery and he replied, "Well, it's not going to heal itself.",...spun on his heals and walked away. I never saw him again. I was given no pain relief, no water, no ice,..nothing,..other than the saline drip! I finally called my brother who lives an hour and a half away and he drove up to check me out. Meanwhile this hospital's Er was only trying to transfer me to another hospital. Total cost for their ER,..All they did was ace bandage my arm against my body!
$7,100!!!
I did need surgery,...unfortunately,...at the same hospital, albeit three days later. The surgeon billed me for,..

$1,800. That's fine, No problem.

The hospital's bill ?
$45,000!!! Day surgery.

total,...

$55,300!!!!

How can any sane person even begin to justify those costs?

[demma]

02:03 PM on 03/30/2012

Here, here. Your situation is what's wrong with private insurance and hospital costs. The hospitals have to charge more now to cover thier own skyrocketing cost due to the un-insured they are obligated to care for through their ER's. It's a nasty viscious cycle and needs to end. Medicare for All!

[NanJac]

02:06 PM on 03/30/2012

Not quite sure it is because of uninsured......hospitals have to make a profit...so tthey charge a lot.......they spend more on more on NON-MEDICAL personnal.

[flckr9]

03:04 PM on 03/30/2012

Demma, In comparison, I broke my wrist/forearm in 2002 while overseas. I went to the local hospital, they x-rayed my arm, set it and cast it (and gave me pain relief, too!) Total cost,....$485. The doctor was Dutch and, knowing I was tourist, he recommended I check with a surgeon when I returned to the US because I would likely need further surgery. I did as advised and needed three metal plates, etc. Even so, that only cost a total of $13,500. While still high, how did a similar surgery costs rise to over $50,000 in 10 years?

[PragmaticFanatic]

05:21 PM on 03/30/2012

>>>>I broke my arm.

That, indeed, was a "bad break".

[luckycur]

01:55 PM on 03/30/2012

I guess may missed the fact that healthcare costs went up 78% from 2000 - 2006,so this is nothing new, and no President has of yet figured out how to stop the rapid rise in cost. The VA and the Military have excellent care, both government run programs. They have zero medical personnel earning over $400,000 yearly, they limit lawsuits, and negotiate for low cost medical supplies.

[demma]

02:10 PM on 03/30/2012

I was a VA employee until January- I had a 1 yr temp contract. I was sad it wasn't renewed. I had the best benefits of my life. Our FEHP was wonderful. I miss it. And I miss serving our veterans. For a government run entity- it does well. People just want to h@te the government for whatever reason. They do not comprehend how much government agencies, that if they weren't there anymore, helps us and how chaotic it would be without them.

[DrMaxChartrand]

01:46 PM on 03/30/2012

And we have seen nothing yet! Obama promises to double to triple costs of America's healthcare price tag because it has no incentives to do otherwise--after it crushes the economy and the US dollar hits the floor, strict controls and rationing will come in and finish us off. Dictatorship and loss of freedom in the making!

[FreddyNWhitey]

11:43 AM on 04/01/2012

how can costs triple if people can barely afford them now? the health industry is ALREADY the number one cause of personal bankruptcy. you're just making stuff up to fan the flames of paranoia. you don't seem to care about people's welfare.

[kentblackdog]

01:20 PM on 03/30/2012

You think health care is expensive now---just wait until you begin paying for the the tens of millions of people, who are not insured now----Obamacare's plan

You think your plan is being cut back, little by litltle on what it covers---just wait unitl you are competing for services with the added tens of million of people, who are not insured now-----Obamacare's plan

If you think medicare is getting short changed now----just wait until the dollar going into medicare are diverted to Obmamcare

The dollars to pay for the added tens and tens and tens of millions of unisured people are going to have to come fom somewhere----expect it to be right out of you pocket in the form, of increased permium costs and increased taxes.

[demma]

01:38 PM on 03/30/2012

No, I think that the outrageous cost of ER care will go down nationwide- with no more "walk-ins" which cost this country billions in unisured care which is added to OUR premiums from the insurance companies. Typically every American with private insurance pays almost $1,000 year additionally to cover those who are uninsured. Prices will go DOWN.

[luckycur]

01:46 PM on 03/30/2012

Were paying for the uninsured now, through increased hospital costs, and increased insurance premiums to cover the increase in hospital costs for medical services to the uninsured. Regardless of whether ObamaCare remains, our cost will continue to skyrocket as fewer businesses offer insurance in order to compete in a world marketplace. In addition, Medicare will flounder due to the influx of Baby Boomers, and Medicaid ranks will continue to explode as more families fall under the poverty line, and more children are diagnosed with learning disabilities.

[BOOWAH]

01:20 PM on 03/30/2012

I am on Medicare with an Advantage Plan! I was thrilled to learn the other day that my plan would pay $200.00 toward the glasses that I had put off purchasing over my last two eye exams because I couldn't afford them! Thank God for Medicare! Just what would we seniors have without it? Insurers would thumb their noses at us because we're high risk! If Obamacare dies, national health care will die for at least a generation! Boy you're kids wil really be thanking you when they get old. Why not go all the way and kill the only viable health care plan, Medicare, while you're at it?

[BOOWAH]

01:05 PM on 03/30/2012

How are you right wingers going to feel when Congress gives Hospitals and Doctors the right to turn away sick people to die in the streets! Yes it's coming and fast! You only think you're living in a compassionate country! Obama tried, but I guess you sheep are beyond salvation!

[FreddyNWhitey]

11:45 AM on 04/01/2012

they call it freedom. they have no conception of wage slavery...everyone should be free to live in total precarity!

[azchirocare]

12:59 PM on 03/30/2012

Our lives, health and economic freedom is based from over the top health care costs designed by the Drug companies, and the AMA with no regard for your health. Insurance companies could not stop them, the government is owned by them and the people of this country continue to be held hostage over failed medical care which does not follow scientific evidence. Every drug is astronomiclly priced, (eg. scorpion treatment viles). Same product in Mexico, less than $100. In Arizona, $12,980.00. The AMA and Drug Companies are killing people by the boat load, but that is the least of the problem. The medications they are prescribing, the immunizations they are sticking in newborn babies is, (as they know) not scientific and is used to guarantee, life long patients at the expense of your children lives. If anything should be done, it is the government stoping this insane power of the Drug Cartels (includes AMA).

[whitney1]

12:48 PM on 03/30/2012

This article or any article I have read states WHY health insurance cost or the cost of receiving health care continues to rise.

[mj1247]

02:17 PM on 03/30/2012

it all boils down to profit..... take the profit out of health care.........

[zombielanche]

11:00 AM on 03/31/2012

This video helps explain the drivers of health costs and ties to the $20,000 Milliman number:

http://bit.ly/millimanvideo